Social media website Twitter has reportedly struck a deal with investment firms Silver Lake and Elliott Management that keeps Jack Dorsey in his role as CEO.
CNBC reports that Twitter has reached a deal with investment firms Elliot Management and Silver Lake, shortly after Elliott’s attempts to oust Jack Dorsey as CEO. The newly agreed-upon deal does not change Dorsey’s role as CEO of Twitter and includes a $1 billion investment in Twitter from Silver Lake. As a result, the firm will fund a $2 billion share repurchase program.
The two investments firms will be awarded one seat each on Twitter’s board, Silver Lake co-CEO and managing partner Egon Durban and Elliott partner Jesse Cohn will also join the board as Twitter continues its search for a third new independent director. Twitter hopes to find a candidate with experience in technology and artificial intelligence who “reflects the diversity of the Twitter service.”
Lead independent director Patrick Pichette said in a statement that Twitter’s board will establish a temporary committee “that will build on our regular evaluation of Twitter’s leadership structure.” Pichette will chair the committee which “will provide a fresh look at our various structures, and report the findings to our Board on an ongoing basis.”
Elliott’s attempts to remove Dorsey as CEO came shortly after Dorsey announced his plans to move to Africa while running both Twitter and Square. Dorsey said last week while under pressure from Elliott that he was reconsidering the Africa move over coronavirus fears “and everything else going on.”
Pichette also expressed confidence in Dorsey’s ability to run both companies simultaneously, stating: “As a Board, we regularly review and evaluate how Twitter is run, and while our CEO structure is unique, so is Jack and so is this Company.”
Over the course of the next year, Twitter reportedly plans to “accelerate revenue growth on a year-over-year basis and gain share in the digital advertising market.” The terms of the agreement reached in the new deal state that Elliott Management and Silver Lake will not “comment on or influence, or attempt to influence, directly or indirectly, any Twitter policies or rules, or policy or rule enforcement decisions, related to the Twitter platform.”